As a seasoned crypto investor with several years of experience under my belt, I’ve learned to navigate the volatile waters of the cryptocurrency market. June was a particularly challenging month, as Ethereum (ETH) plunged from a high of $3887 to a low of $3232, resulting in a significant loss of 16.9%. However, I’m not overly alarmed by this downturn as it appears to be a healthy retracement based on Fibonacci tools.
As a crypto investor looking back on June, I can’t help but notice the bearish turn the market took during this month. Many cryptocurrencies, including Ethereum, revisited their monthly support levels following a widespread sell-off. My Ethereum investment saw a significant drop from its high of $3887 to a low of $3232 – a loss of 16.9%. However, the downturn doesn’t necessarily mean all hope is lost for Ethereum bulls like myself. The Fibonacci retracement tools suggest that this decline could mark a healthy correction, potentially setting the stage for a strong counterattack in the future.
Ethereum Price Eyes Stability as 78% of ETH is Held by Long-Term Holders
In late May, Ethereum reached a new peak price at $3975 but failed to hold it, signaling a sideways trend. This price action suggests that there is significant selling pressure in the market, making it challenging for ETH buyers to regain momentum.
As a crypto investor, I’ve noticed something intriguing about this altcoin’s price chart. By drawing a trendline through the overhead peaks, it appears we might be looking at a triangle formation. Additionally, there’s dynamic support in play since October 2023 with an ascending trendline.
Currently, the Ethereum price is at $3389, giving it a market capitalization of $407.3 billion. However, if the current supply pressure continues, the coin’s price may drop by an additional 5%, potentially reaching support at the long-awaited trendline.
The buying demand resurfacing at the trendline has the potential to boost the asset’s value by around 14-15%, potentially reaching a resistance level of $3860. If the triangle pattern experiences a bullish breakout, it could serve as a stronger indication supporting the continuation of the uptrend.
Recently, IntoTheBlock, a well-known cryptocurrency analysis firm, shared an intriguing figure in a tweet: Approximately 78% of Ether’s existing supply is currently owned by long-term investors. Amid Ethereum’s price fluctuations, the percentage of ETH held by these committed investors has persistently risen, signaling a robust conviction in the asset’s potential worth.
78% of ETH is owned by long-term hodlers
— IntoTheBlock (@intotheblock) June 28, 2024
As an analyst, I’ve observed that Ethereum’s price behavior in July has shown a pattern of fluctuations over the past few years, mirroring the wider market’s volatility and the shifting investor sentiment. The most significant increase was a robust +56.62% rise in 2022, whereas the steepest decline was a disappointing -27.29% plunge in 2017.
The typical July investment yields an average gain of 6.95%, but the median return is a negative 4.41%, suggesting inconsistent results.
With the continued advancements regarding Ethereum ETFs listed in the United States, expected to debut around mid-July, it appears that the chances are heavily in favor of buyers.
Technical Indicator
- BB Indicator: An upswing in the lower boundary of the Bollinger Band indicator losing bearish momentum and additional support for buyers to rebound.
- Moving Average Convergence Divergence: A negative crossover between the MACD and signal line highlights the near-term trend is intact and bearish.
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2024-06-30 14:40